Tag: STC

The Managing Director of Intercity STC Coaches Limited, Nana Akomea, has dismissed reports alleging his involvement in the sale of a company property to the Stadium Hotel in Kumasi.

In a Facebook post on Sunday, November 17, 2024, Nana Akomea described the claims as baseless, clarifying that the Stadium Hotel is not owned by the state-run STC.

He explained that the circulating letter, which fueled the allegations, pertains to a tenancy agreement and not the sale of any property, as falsely reported.

Nana Akomea further addressed the matter in his post, outlining three key clarifications regarding the issue.

1. No Managing Director of a state-owned company, including STC, has the authority to sell company property.

2. The Stadium Hotel in Kumasi is not owned by STC, making it impossible for the corporation or its management to sell it.

3. The letter in question refers to a tenancy agreement between STC and the Stadium Hotel, which was approved by STC’s management and board. This agreement has brought substantial financial benefits to STC.

The STC Managing Director expressed disappointment in the allegations and urged individuals to read the full document, which clearly outlines the details of the tenancy agreement.

“I assume the people who posted are patriots expressing concern about a state company. But at least, they should read the document that has raised their concern. It’s a half-page letter that can be read in 30 seconds,” he wrote.

See Nana Akomea’s post below:

A new alliance between Intercity STC and MUUS Transport Alliance Cooperation plans to bring in 100 new buses from China to boost the fleet of the Ghanaian company by August 2024.

This was revealed by Nana Akomea, the Managing Director of Intercity STC, during the formal signing event in Accra on Thursday, June 27, 2024.

During the signing event in Accra, Nana Akomea mentioned that the timing of the partnership would be advantageous for both organizations.

“We are very happy to have them on board. We have signed a few partnership agreements over the period but this particular occasion is totally different. This is the first time we’ve had our partners representing with about 20 of them, in fact, they literally outnumber us in our own office and clearly, it shows that they are serious about the partnership and we are very happy about that.

“We are happy to have them on board because it is a good time for the transport business. The macro environment is relatively stable. Like any business, if the macro environment goes bad, the business goes bad, and we in the transport business, when the currency is not stable, it affects the price of fuel immediately… so, we are affected directly by the macro environment.

“And indeed, in the period 2020-2023, when, because of the COVID, we all know the macro environment became unstable and the dollar price kept rising every week, literally. It was a very tough period for the transport business because you are not able to increase transport fares any time the price of fuel changes. So, it was a very tough operating environment, but now we agree that in the last 12 months, the macro environment is different and relatively more stable… so, we’re happy to have you on board at this time when the operating environment promises better margins for the business,” he said.

Nana Akomea further stated that the arrangement stipulates a partnership between the two companies, operating on a revenue-sharing basis.

He also mentioned that Intercity STC might eventually explore the option of purchasing the buses.

“So, the MoU will take 20% of the gross and they take 80%, out of which they will do their insurance and maintenance and drivers salaries and all of that, and then the next clause provides that STC may opt to lease or buy the buses on mutually-acceptable terms… and if the price is right, and the technical specifications are right, we have the option to buy the buses,” he added.

Dr. Seidu Mumuni, for his part, reassured Intercity STC’s management of their commitment and affirmed their dedication to enhancing the country’s transportation sector through their partnership.

“I want to assure STC that MUUS International is a serious company. It is not only STC but you can see other companies that are here to join us to give us their versatile support. There is a bilateral discussion, for instance, with the Ghana National Fire Service now and with the Ministry of the Interior to supply them with fire trucks, the tools and give them training, and planning ahead to establish the first fire academy in Ghana.

“We are the only company that shows our dynamism and I am charged that really, we are going to really deliver. Our team is ever ready to invite STC to China,” he said.

The STC-MUUS agreement will introduce buses produced by King Long Automotive, one of China’s largest manufacturers of coaches.

Under the partnership, MUUS plans to introduce electric buses, establish electric assembly plants, retooling facilities, and build state-of-the-art bus terminals with technical service yards in Ghana. These initiatives aim to enhance commerce within Ghana and throughout West Africa.

A member of the Committee on Employment, Social Welfare, and State-Owned Enterprises, Dr. Kwabena Donkor, has labeled the appointment of three Managing Directors for the Intercity State Transport Company (STC) as regrettable.

The selection of any individual as the Deputy Managing Director in charge of Operations has been met with opposition from the STC unionized workforce.

The staff argues that the company’s top priority currently is acquiring more buses, not making new appointments.

“ISTC has operated without a Deputy Managing Director for a considerable period, suggesting that reducing the number of deputy managing directors will not adversely affect our operations,” a section of a petition sent to the Board Chairman of the company explained.

During an interview on ‘Morning Starr’ with Francis Abban, the lawmaker from Pru East raised concerns about why a struggling organization would require so many Managing Directors.

“The STC situation is most unfortunate. STC is not a blue-chip company; it is a struggling medium-sized state-owned company. Therefore, it beats my imagination why such a struggling medium-sized company should even have deputy MDs, let alone three.

“It is the appointment of the third one that triggered the agitation by the staff. They used not to have a deputy MD. When you have directors as heads of divisions or business units, for a medium-sized company, let’s not forget that this is a Limited Liability Company,” said Dr. Donkor.

He continued, “Why would you need a deputy MD, let alone have three? The two were an overkill, so to add a third one… What we often forget is that it’s not just about salaries. The non-salary cost of labor or human capital is very high, so when you add that, it is symptomatic of a failure to manage commercially. How can a medium-sized company like STC justify having three deputy managing directors?”

A member of the Committee on Employment, Social Welfare, and State-Owned Enterprises, Dr. Kwabena Donkor, has labeled the appointment of three Managing Directors for the Intercity State Transport Company (STC) as regrettable.

The selection of any individual as the Deputy Managing Director in charge of Operations has been met with opposition from the STC unionized workforce.

The staff argues that the company’s top priority currently is acquiring more buses, not making new appointments.

“ISTC has operated without a Deputy Managing Director for a considerable period, suggesting that reducing the number of deputy managing directors will not adversely affect our operations,” a section of a petition sent to the Board Chairman of the company explained.

During an interview on ‘Morning Starr’ with Francis Abban, the lawmaker from Pru East raised concerns about why a struggling organization would require so many Managing Directors.

“The STC situation is most unfortunate. STC is not a blue-chip company; it is a struggling medium-sized state-owned company. Therefore, it beats my imagination why such a struggling medium-sized company should even have deputy MDs, let alone three.

“It is the appointment of the third one that triggered the agitation by the staff. They used not to have a deputy MD. When you have directors as heads of divisions or business units, for a medium-sized company, let’s not forget that this is a Limited Liability Company,” said Dr. Donkor.

He continued, “Why would you need a deputy MD, let alone have three? The two were an overkill, so to add a third one… What we often forget is that it’s not just about salaries. The non-salary cost of labor or human capital is very high, so when you add that, it is symptomatic of a failure to manage commercially. How can a medium-sized company like STC justify having three deputy managing directors?”